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Showing posts with label DROPBOX. Show all posts
Showing posts with label DROPBOX. Show all posts

Friday, November 5, 2021

Dropbox Announces Third Quarter Fiscal 2021 Results

 Dropbox Announces Third Quarter Fiscal 2021 Results

Nov 4, 2021

Third Quarter Revenue of $550.2 Million, Up 12.9% Year-over-year
GAAP and Non-GAAP Operating Income of $77.3 Million and $161.0 Million, Up 157.7% and 43.5% Year-over-year
Net Cash Provided by Operating Activities of $231.5 Million and Free Cash Flow of $221.5 Million

SAN FRANCISCO, Calif.--(BUSINESS WIRE)--Nov. 4, 2021-- Dropbox, Inc. (NASDAQ: DBX), today announced financial results for its third quarter ended September 30, 2021.

“Q3 was another solid quarter with record free cash flow, strong revenue growth, and great progress against our strategic objectives as we focus on delivering more value to our customers and shareholders,” said Dropbox Co-Founder and Chief Executive Officer Drew Houston. “We shipped several new product experiences to help our customers with today’s challenges of distributed and remote work, and I’m confident in our future as we work toward our vision of building one organized place for content and all the workflows around it.”

Third Quarter Fiscal 2021 Results

  • Total revenue was $550.2 million, an increase of 12.9% from the same period last year. On a constant currency basis, year-over-year growth would have been 10.7%.(1)
  • Total ARR ended at $2.218 billion, an increase of $52.1 million quarter-over-quarter and an increase of 12.0% year-over-year. On a constant currency basis, year-over-year growth would have been 10.4%.(2)
  • Paying users ended at 16.49 million, as compared to 15.25 million for the same period last year. Average revenue per paying user was $133.79, as compared to $128.03 for the same period last year.
  • GAAP gross margin was 79.6%, as compared to 78.8% in the same period last year. Non-GAAP gross margin was 81.0%, as compared to 80.0% in the same period last year.
  • GAAP operating margin was 14.0%, as compared to 6.2% in the same period last year. Non-GAAP operating margin was 29.3%, as compared to 23.0% in the same period last year.
  • GAAP net income was $75.6 million, as compared to $32.7 million in the same period last year. Non-GAAP net income was $147.1 million, as compared to $110.2 million in the same period last year.
  • Net cash provided by operating activities was $231.5 million, as compared to $200.9 million in the same period last year. Free cash flow was $221.5 million, as compared to $187.0 million in the same period last year.
  • GAAP diluted net income per share attributable to common stockholders was $0.19, as compared to $0.08 in the same period last year. Non-GAAP diluted net income per share attributable to common stockholders was $0.37, as compared to $0.26 in the same period last year.(3)
  • Cash, cash equivalents and short-term investments ended at $1.929 billion.

(1) We calculate constant currency revenue growth rates by applying the prior period weighted average exchange rates to current period results.

 

(2) We calculate total annual recurring revenue ("Total ARR") as the number of users who have active paid licenses for access to our platform as of the end of the period, multiplied by their annualized subscription price to our platform. We adjust our exchange rates used to calculate Total ARR on an annual basis, at the beginning of each fiscal year. We calculate constant currency Total ARR growth rates by applying the current period rate to prior period results.

 

(3) Non-GAAP diluted net income per share attributable to common stockholders is calculated based upon 398.1 million and 419.9 million diluted weighted-average shares of common stock for the three months ended September 30, 2021 and 2020, respectively. 

Financial Outlook

Dropbox will provide forward-looking guidance in connection with this quarterly earnings announcement on its conference call, webcast, and on its investor relations website at http://investors.dropbox.com.

Conference Call Information

Dropbox plans to host a conference call today to review its third quarter financial results and to discuss its financial outlook. This call is scheduled to begin at 2:00 p.m. PT / 5:00 p.m. ET and can be accessed by dialing (877) 300-7844 from the United States or (786) 815-8440 internationally with reference to the company name and conference title, and a live webcast and replay of the conference call can be accessed from the Dropbox investor relations website at http://investors.dropbox.com. Following the completion of the call, a telephonic replay will be available through 7:00 PM ET on November 11, 2021 at (855) 859-2056 from the United States or (404) 537-3406 internationally with recording access code 2628759.

Other Upcoming Events

  • Timothy Young, President, will be presenting at the RBC Capital Markets Global Technology, Internet, Media and Telecom Virtual Conference on Tuesday, November 16th.
  • Tim Regan, Chief Financial Officer, will be hosting meetings at the Wells Fargo 5th Annual TMT Summit on Tuesday, November 30th.
  • Tim Regan, Chief Financial Officer, will be presenting at the 45th Nasdaq Investor Conference on Thursday, December 2nd.

During these events, a live webcast will be accessible from the Dropbox investor relations website at http://investors.dropbox.com. Following the event, a replay will be made available at the same location.

About Dropbox

Dropbox is the one place to keep life organized and keep work moving. With more than 700 million registered users across 180 countries, we're on a mission to design a more enlightened way of working. Dropbox is headquartered in San Francisco, CA, and has offices around the world. For more information on our mission and products, visit http://dropbox.com.

Use of Non-GAAP Financial Measures

Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section of the tables titled "About Non-GAAP Financial Measures."

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, among other things, our expectations regarding distributed work trends, related market opportunities and our ability to capitalize on those opportunities. Words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "plans," and similar expressions are intended to identify forward-looking statements. Dropbox has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that Dropbox believes may affect its business, financial condition, and results of operations. These forward-looking statements speak only as of the date of this press release and are subject to risks, uncertainties, and assumptions including, but not limited to: (i) our ability to realize anticipated benefits to our business from our shift to a Virtual First work model as well as impacts to our financial results and business operations as a result of this shift, (ii) impacts to our financial results, business operations and the business of our customers, suppliers, partners and the economy as a result of the COVID-19 pandemic, and related public health measures, as well as the potential for a more permanent global shift to remote work, (iii) our ability to retain and upgrade paying users, and increase our recurring revenue; (iv) our ability to attract new users or convert registered users to paying users; (v) our future financial performance, including trends in revenue, costs of revenue, gross profit or gross margin, operating expenses, paying users, and free cash flow; (vi) our history of net losses and our ability to achieve or maintain profitability; (vii) our liability for any unauthorized access to our data or our users’ content, including through privacy and data security breaches; (viii) significant disruption of service on our platform or loss of content; (ix) any decline in demand for our platform or for content collaboration solutions in general; (x) changes in the interoperability of our platform across devices, operating systems, and third-party applications that we do not control; (xi) competition in our markets; (xii) our ability to respond to rapid technological changes, extend our platform, develop new features or products, or gain market acceptance for such new features or products, particularly in light of potential disruptions to the productivity of our employees that may result from our shift to a Virtual First work model; (xiii) our ability to manage our growth or plan for future growth; (xiv) our acquisition of other businesses and the potential of such acquisitions to require significant management attention, disrupt our business, or dilute stockholder value; (xv) our ability to attract and retain key personnel and highly qualified personnel; (xvi) our capital allocation plans with respect to our stock repurchase program and other investments; and (xvii) the dual class structure of our common stock and its effect of concentrating voting control with certain stockholders who held our capital stock prior to the completion of our initial public offering. Further information on risks that could affect Dropbox’s results is included in our filings with the Securities and Exchange Commission ("SEC"), including our Form 10-Q for the quarter ended June 30, 2021. Additional information will be made available in our quarterly report on Form 10-Q for the quarter ended September 30, 2021 and other reports that we may file with the SEC from time to time, which could cause actual results to vary from expectations. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Dropbox assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release, except as required by applicable law.

Dropbox, Inc.

Condensed Consolidated Statements of Operations

(In millions, except per share data)

(Unaudited)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2021

 

2020

 

2021

 

2020

Revenue

$

550.2

 

 

 

$

487.4

 

 

 

$

1,592.4

 

 

 

$

1,409.8

 

 

Cost of revenue(1)

112.0

 

 

 

103.2

 

 

 

328.4

 

 

 

308.8

 

 

Gross profit

438.2

 

 

 

384.2

 

 

 

1,264.0

 

 

 

1,101.0

 

 

Operating expenses(1):

 

 

 

 

 

 

 

Research and development

187.3

 

 

 

183.3

 

 

 

554.0

 

 

 

550.9

 

 

Sales and marketing

115.7

 

 

 

105.8

 

 

 

319.2

 

 

 

312.9

 

 

General and administrative

57.9

 

 

 

65.1

 

 

 

169.3

 

 

 

167.6

 

 

Impairment related to real estate assets

 

 

 

 

 

 

17.3

 

 

 

 

 

Total operating expenses

360.9

 

 

 

354.2

 

 

 

1,059.8

 

 

 

1,031.4

 

 

Income from operations

77.3

 

 

 

30.0

 

 

 

204.2

 

 

 

69.6

 

 

Interest income (expense), net

(1.7

)

 

 

0.1

 

 

 

(3.8

)

 

 

2.6

 

 

Other income, net

0.5

 

 

 

3.5

 

 

 

13.1

 

 

 

23.1

 

 

Income before income taxes

76.1

 

 

 

33.6

 

 

 

213.5

 

 

 

95.3

 

 

Provision for income taxes

(0.5

)

 

 

(0.9

)

 

 

(2.3

)

 

 

(5.8

)

 

Net income

$

75.6

 

 

 

$

32.7

 

 

 

$

211.2

 

 

 

$

89.5

 

 

Basic net income per share

$

0.20

 

 

 

$

0.08

 

 

 

$

0.54

 

 

 

$

0.22

 

 

Diluted net income per share

$

0.19

 

 

 

$

0.08

 

 

 

$

0.53

 

 

 

$

0.21

 

 

Weighted-average shares used in computing net income per share attributable
  to common stockholders, basic

385.5

 

 

 

414.2

 

 

 

390.6

 

 

 

415.2

 

 

Weighted-average shares used in computing net income per share attributable
  to common stockholders, diluted

398.1

 

 

 

419.9

 

 

 

400.3

 

 

 

419.9

 

 

 

(1) Includes stock-based compensation expense as follows (in millions):

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2021

 

2020

 

2021

 

2020

Cost of revenue

$

6.0

 

 

 

$

4.6

 

 

 

$

17.3

 

 

 

$

12.6

 

 

Research and development

48.7

 

 

 

46.9

 

 

 

141.7

 

 

 

131.1

 

 

Sales and marketing

5.9

 

 

 

8.9

 

 

 

19.0

 

 

 

25.1

 

 

General and administrative(2)

12.2

 

 

 

15.3

 

 

 

36.6

 

 

 

23.3

 

 

 

(2) On March 19, 2020, one of our co-founders resigned as a member of the board and as an officer of Dropbox, resulting in the reversal of $23.8 million in stock-based compensation expense. Of the total amount reversed, $21.5 million related to expense recognized prior to December 31, 2019.

Dropbox, Inc.

Condensed Consolidated Balance Sheets

(In millions)

(Unaudited)

 

 

As of

 

 

September 30, 2021

 

December 31, 2020

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

688.9

 

 

 

$

314.9

 

 

Short-term investments

 

1,239.8

 

 

 

806.4

 

 

Trade and other receivables, net

 

40.9

 

 

 

43.4

 

 

Prepaid expenses and other current assets

 

86.7

 

 

 

62.8

 

 

Total current assets

 

2,056.3

 

 

 

1,227.5

 

 

Property and equipment, net

 

345.8

 

 

 

338.7

 

 

Operating lease right-of-use asset

 

464.8

 

 

 

470.5

 

 

Intangible assets, net

 

49.6

 

 

 

33.5

 

 

Goodwill

 

347.2

 

 

 

236.9

 

 

Other assets

 

75.4

 

 

 

80.1

 

 

Total assets

 

$

3,339.1

 

 

 

$

2,387.2

 

 

Liabilities and stockholders' (deficit) equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

23.0

 

 

 

$

18.7

 

 

Accrued and other current liabilities

 

170.9

 

 

 

156.7

 

 

Accrued compensation and benefits

 

107.1

 

 

 

113.6

 

 

Operating lease liability

 

85.2

 

 

 

88.7

 

 

Finance lease obligation

 

120.9

 

 

 

99.6

 

 

Deferred revenue

 

668.0

 

 

 

610.5

 

 

Total current liabilities

 

1,175.1

 

 

 

1,087.8

 

 

Operating lease liability, non-current

 

743.6

 

 

 

759.6

 

 

Finance lease obligation, non-current

 

182.2

 

 

 

171.6

 

 

Convertible senior notes, net, non-current

 

1,369.3

 

 

 

 

 

Other non-current liabilities

 

31.5

 

 

 

34.4

 

 

Total liabilities

 

3,501.7

 

 

 

2,053.4

 

 

Stockholders' (deficit) equity:

 

 

 

 

Additional paid-in-capital

 

2,468.1

 

 

 

2,564.3

 

 

Accumulated deficit

 

(2,635.5

)

 

 

(2,241.4

)

 

Accumulated other comprehensive income

 

4.8

 

 

 

10.9

 

 

Total stockholders' (deficit) equity

 

(162.6

)

 

 

333.8

 

 

Total liabilities and stockholders' (deficit) equity

 

$

3,339.1

 

 

 

$

2,387.2

 

 

Dropbox, Inc.

Condensed Consolidated Statements of Cash Flows

(In millions)

(Unaudited)

  

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

2021

 

2020

 

2021

 

2020

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net Income

 

$

75.6

 

 

 

$

32.7

 

 

 

$

211.2

 

 

 

$

89.5

 

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

38.8

 

 

 

40.9

 

 

 

110.3

 

 

 

120.5

 

 

Stock-based compensation

 

72.8

 

 

 

75.7

 

 

 

214.6

 

 

 

192.1

 

 

Impairment related to real estate assets

 

 

 

 

 

 

 

17.3

 

 

 

 

 

Amortization of debt issuance costs

 

1.1

 

 

 

0.1

 

 

 

2.8

 

 

 

0.4

 

 

Net gains on equity investments

 

 

 

 

 

 

 

 

 

 

(17.5

)

 

Amortization of deferred commissions

 

8.2

 

 

 

6.7

 

 

 

23.6

 

 

 

17.5

 

 

Other

 

0.7

 

 

 

(0.8

)

 

 

(5.5

)

 

 

(0.9

)

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Trade and other receivables, net

 

11.2

 

 

 

(4.1

)

 

 

2.6

 

 

 

(12.9

)

 

Prepaid expenses and other current assets

 

(24.0

)

 

 

(1.6

)

 

 

(47.8

)

 

 

(24.0

)

 

Other assets

 

26.9

 

 

 

22.2

 

 

 

66.0

 

 

 

55.0

 

 

Accounts payable

 

(7.5

)

 

 

3.9

 

 

 

4.7

 

 

 

(8.9

)

 

Accrued and other current liabilities

 

11.1

 

 

 

2.0

 

 

 

2.8

 

 

 

(22.7

)

 

Accrued compensation and benefits

 

30.8

 

 

 

22.2

 

 

 

(6.8

)

 

 

(8.1

)

 

Deferred revenue

 

12.2

 

 

 

14.7

 

 

 

56.6

 

 

 

43.4

 

 

Other non-current liabilities

 

(27.6

)

 

 

(16.4

)

 

 

(88.1

)

 

 

(42.6

)

 

Tenant improvement allowance reimbursement

 

1.2

 

 

 

2.7

 

 

 

2.8

 

 

 

19.3

 

 

Net cash provided by operating activities

 

231.5

 

 

 

200.9

 

 

 

567.1

 

 

 

400.1

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Capital expenditures

 

(10.0

)

 

 

(13.9

)

 

 

(20.8

)

 

 

(67.8

)

 

Business combinations, net of cash acquired

 

0.1

 

 

 

 

 

 

(125.3

)

 

 

 

 

Purchases of short-term investments

 

(366.9

)

 

 

(111.9

)

 

 

(1,060.6

)

 

 

(541.1

)

 

Proceeds from sales of short-term investments

 

99.1

 

 

 

37.7

 

 

 

270.3

 

 

 

183.0

 

 

Proceeds from maturities of short-term investments

 

83.9

 

 

 

83.0

 

 

 

347.9

 

 

 

221.9

 

 

Other

 

10.9

 

 

 

3.1

 

 

 

28.4

 

 

 

12.4

 

 

Net cash used in investing activities

 

(182.9

)

 

 

(2.0

)

 

 

(560.1

)

 

 

(191.6

)

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Proceeds from issuance of convertible senior notes

 

 

 

 

 

 

 

1,389.1

 

 

 

 

 

Purchase of convertible note hedge in connection with issuance of convertible senior notes

 

 

 

 

 

 

 

(265.3

)

 

 

 

 

Proceeds from sale of warrants in connection with issuance of convertible senior notes

 

 

 

 

 

 

 

202.9

 

 

 

 

 

Payments of debt issuance costs

 

 

 

 

 

 

 

(23.7

)

 

 

 

 

Payments for taxes related to net share settlement of restricted stock units and awards

 

(35.5

)

 

 

(22.5

)

 

 

(98.2

)

 

 

(66.5

)

 

Proceeds from issuance of common stock, net of taxes withheld

 

1.1

 

 

 

0.1

 

 

 

6.6

 

 

 

1.6

 

 

Principal payments on finance lease obligations

 

(28.5

)

 

 

(21.5

)

 

 

(79.2

)

 

 

(64.9

)

 

Common stock repurchases

 

(181.0

)

 

 

(37.5

)

 

 

(763.7

)

 

 

(177.3

)

 

Other

 

 

 

 

(0.3

)

 

 

 

 

 

(0.8

)

 

Net cash provided by (used in) financing activities

 

(243.9

)

 

 

(81.7

)

 

 

368.5

 

 

 

(307.9

)

 

Effect of exchange rate changes on cash and cash equivalents

 

(1.1

)

 

 

1.4

 

 

 

(1.5

)

 

 

0.8

 

 

Change in cash and cash equivalents

 

(196.4

)

 

 

118.6

 

 

 

374.0

 

 

 

(98.6

)

 

Cash and cash equivalents - beginning of period

 

885.3

 

 

 

334.1

 

 

 

314.9

 

 

 

551.3

 

 

Cash and cash equivalents - end of period

 

$

688.9

 

 

 

$

452.7

 

 

 

$

688.9

 

 

 

$

452.7

 

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow data:

 

 

 

 

 

 

 

 

Property and equipment acquired under finance leases

 

$

43.8

 

 

 

$

41.5

 

 

 

$

111.1

 

 

 

$

105.9

 

 

Dropbox, Inc.

Three Months Ended September 30, 2021

Reconciliation of GAAP to Non-GAAP results

(In millions, except for percentages, which may not foot due to rounding)

(Unaudited)

  

 

 

GAAP

 

Stock-based
compensation

 

Acquisition-
related and
other expenses

 

Intangibles
amortization

 

Workforce
reduction
expense(1)

 

Non-GAAP

Cost of revenue

 

$

112.0

 

 

$

(6.0)

 

 

$

 

 

$

(1.6)

 

 

$

 

 

$

104.4

 

Cost of revenue margin

 

20.4

%

 

(1.1

%)

 

%

 

(0.3

%)

 

%

 

19.0

%

Gross profit

 

438.2

 

 

6.0

 

 

 

 

1.6

 

 

 

 

445.8

 

Gross margin

 

79.6

%

 

1.1

%

 

%

 

0.3

%

 

%

 

81.0

%

Research and development

 

187.3

 

 

(48.7)

 

 

(5.1)

 

 

 

 

(0.1)

 

 

133.4

 

Research and development margin

 

34.0

%

 

(8.9

%)

 

(0.9

%)

 

%

 

%

 

24.2

%

Sales and marketing

 

115.7

 

 

(5.9)

 

 

(1.7)

 

 

(1.9)

 

 

(0.4)

 

 

105.8

 

Sales and marketing margin

 

21.0

%

 

(1.1

%)

 

(0.3

%)

 

(0.3

%)

 

(0.1

%)

 

19.2

%

General and administrative

 

57.9

 

 

(12.2)

 

 

 

 

 

 

(0.1)

 

 

45.6

 

General and administrative margin

 

10.5

%

 

(2.2

%)

 

%

 

%

 

%

 

8.3

%

Income from operations

 

$

77.3

 

 

$

72.8

 

 

$

6.8

 

 

$

3.5

 

 

$

0.6

 

 

$

161.0

 

Operating margin

 

14.0

%

 

13.2

%

 

1.2

%

 

0.6

%

 

0.1

%

 

29.3

%

  

(1) Includes expenses related to workforce reduction such as severance, benefits and other related items.

Dropbox, Inc.

Three Months Ended September 30, 2020

Reconciliation of GAAP to Non-GAAP results

(In millions, except for percentages, which may not foot due to rounding)

(Unaudited)

  

 

 

GAAP

 

Stock-based
compensation

 

Acquisition-
related and
other expenses

 

Intangibles
amortization

 

Non-GAAP

Cost of revenue

 

$

103.2

 

 

$

(4.6)

 

 

$

 

 

$

(1.0)

 

 

$

97.6

 

Cost of revenue margin

 

21.2

%

 

(0.9

%)

 

%

 

(0.2

%)

 

20.0

%

Gross profit

 

384.2

 

 

4.6

 

 

 

 

1.0

 

 

389.8

 

Gross margin

 

78.8

%

 

0.9

%

 

%

 

0.2

%

 

80.0

%

Research and development

 

183.3

 

 

(46.9)

 

 

(4.1)

 

 

 

 

132.3

 

Research and development margin

 

37.6

%

 

(9.6

%)

 

(0.8

%)

 

%

 

27.1

%

Sales and marketing

 

105.8

 

 

(8.9)

 

 

 

 

(1.4)

 

 

95.5

 

Sales and marketing margin

 

21.7

%

 

(1.8

%)

 

%

 

(0.3

%)

 

19.6

%

General and administrative

 

65.1

 

 

(15.3)

 

 

 

 

 

 

49.8

 

General and administrative margin

 

13.4

%

 

(3.1

%)

 

%

 

%

 

10.2

%

Income from operations

 

$

30.0

 

 

$

75.7

 

 

$

4.1

 

 

$

2.4

 

 

$

112.2

 

Operating margin

 

6.2

%

 

15.5

%

 

0.8

%

 

0.5

%

 

23.0

%

Dropbox, Inc.

Nine Months Ended September 30, 2021

Reconciliation of GAAP to Non-GAAP results

(In millions, except for percentages, which may not foot due to rounding)

(Unaudited)

 

 

GAAP

 

Stock-based
compensation

 

Acquisition-
related and
other
expenses

 

Intangibles
amortization

 

Impairment
related to real
estate assets

 

Workforce
reduction
expense(1)

 

Non-GAAP

Cost of revenue

 

$

328.4

 

 

$

(17.3)

 

 

$

 

 

$

(4.2)

 

 

$

 

 

$

(1.7)

 

 

$

305.2

 

Cost of revenue margin

 

20.6

%

 

(1.1

%)

 

%

 

(0.3

%)

 

%

 

(0.1

%)

 

19.2

%

Gross profit

 

1,264.0

 

 

17.3

 

 

 

 

4.2

 

 

 

 

1.7

 

 

1,287.2

 

Gross margin

 

79.4

%

 

1.1

%

 

%

 

0.3

%

 

%

 

0.1

%

 

80.8

%

Research and development

 

554.0

 

 

(141.7)

 

 

(14.4)

 

 

 

 

 

 

(3.2)

 

 

394.7

 

Research and development margin

 

34.8

%

 

(8.9

%)

 

(0.9

%)

 

%

 

%

 

(0.2

%)

 

24.8

%

Sales and marketing

 

319.2

 

 

(19.0)

 

 

(3.6)

 

 

(5.2)

 

 

 

 

(6.9)

 

 

284.5

 

Sales and marketing margin

 

20.0

%

 

(1.2

%)

 

(0.2

%)

 

(0.3

%)

 

%

 

(0.4

%)

 

17.9

%

General and administrative

 

169.3

 

 

(36.6)

 

 

(1.2)

 

 

 

 

 

 

(2.5)

 

 

129.0

 

General and administrative margin

 

10.6

%

 

(2.3

%)

 

(0.1

%)

 

%

 

%

 

(0.2

%)

 

8.1

%

Impairment related to real estate assets

 

17.3

 

 

 

 

 

 

 

 

(17.3)

 

 

 

 

 

Impairment related to real estate assets margin

 

1.1

%

 

%

 

%

 

%

 

(1.1

%)

 

%

 

%

Income from operations

 

$

204.2

 

 

$

214.6

 

 

$

19.2

 

 

$

9.4

 

 

$

17.3

 

 

$

14.3

 

 

$

479.0

 

Operating margin

 

12.8

%

 

13.5

%

 

1.2

%

 

0.6

%

 

1.1

%

 

0.9

%

 

30.1

%

 

(1) Includes expenses related to workforce reduction such as severance, benefits and other related items.

Dropbox, Inc.

Nine Months Ended September 30, 2020

Reconciliation of GAAP to Non-GAAP results

(In millions, except for percentages, which may not foot due to rounding)

(Unaudited)

  

 

 

GAAP

 

Stock-based
compensation

 

Acquisition-
related and
other expenses

 

Intangibles
amortization

 

Non-GAAP

Cost of revenue

 

$

308.8

 

 

$

(12.6)

 

 

$

 

 

$

(3.0)

 

 

$

293.2

 

Cost of revenue margin

 

21.9

%

 

(0.9

%)

 

%

 

(0.2

%)

 

20.8

%

Gross profit

 

1,101.0

 

 

12.6

 

 

 

 

3.0

 

 

1,116.6

 

Gross margin

 

78.1

%

 

0.9

%

 

%

 

0.2

%

 

79.2

%

Research and development

 

550.9

 

 

(131.1)

 

 

(12.6)

 

 

 

 

407.2

 

Research and development margin

 

39.1

%

 

(9.3

%)

 

(0.9

%)

 

%

 

28.9

%

Sales and marketing

 

312.9

 

 

(25.1)

 

 

 

 

(4.1)

 

 

283.7

 

Sales and marketing margin

 

22.2

%

 

(1.8

%)

 

%

 

(0.3

%)

 

20.1

%

General and administrative

 

167.6

 

 

(23.3)

 

 

(0.1)

 

 

 

 

144.2

 

General and administrative margin

 

11.9

%

 

(1.7

%)

 

%

 

%

 

10.2

%

Income from operations

 

$

69.6

 

 

$

192.1

 

 

$

12.7

 

 

$

7.1

 

 

$

281.5

 

Operating margin

 

4.9

%

 

13.6

%

 

0.9

%

 

0.5

%

 

20.0

%

Dropbox, Inc.

Three and Nine Months Ended September 30, 2021 and 2020

Reconciliation of GAAP net income to Non-GAAP net income and Non-GAAP diluted net income per share

(In millions, except per share data)

(Unaudited)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

2021

 

2020

 

2021

 

2020

GAAP net income

 

$

75.6

 

 

 

$

32.7

 

 

 

$

211.2

 

 

 

$

89.5

 

 

Stock-based compensation

 

72.8

 

 

 

75.7

 

 

 

214.6

 

 

 

192.1

 

 

Acquisition-related and other expenses

 

6.8

 

 

 

4.1